XOX unveils plan to cut accumulated losses of RM50m

PEPALING JAYA: XOX Bhd has announced several proposals to reduce its accumulated losses amounting to RM50.05mil as at end-June.

The mobile virtual network operator, which has a market cap of RM33.2mil, told Bursa Malaysia that it was proposing to reduce up to RM32.73mil from its share premium account.

“The credit arising therefrom shall be utilised towards setting off against the accumulated losses of the company,” it said.

On top of that, it has proposed to halve the par value of its shares to five sen each, subsequently consolidating every two XOX shares of five sen each into one new XOX share of 10 sen.

The par value reduction would give rise to a credit of RM16mil, which would be used to reduce its accumulated losses, it added.

“As at Oct 8, being the latest practicable date, the issued and paid-up share capital of the company was RM33.2mil, comprising 332 million XOX shares.

“Upon completion of the proposed par value reduction, the issued and paid-up share capital of XOX would be RM16.6mil, comprising 332 million XOX shares,” it said.

The corporate exercise also includes a restricted issuance of 190 million new shares at 10 sen apiece and a renounceable rights issue of up to 356 million shares.

Every one existing XOX share is entitled to one rights share that comes with a free detachable warrant.

It said the pricing of the rights share and the entitlement date will be determined later.

It has also proposed to establish a share issuance scheme of up to 30% of its issued and paid-up capital for its eligible directors and employees, as well as to increase the authorised share capital of XOX from RM100mil comprising one million XOX shares to RM300mil comprising three million XOX shares.

XOX shares slid 0.5 sen to 10 sen yesterday.